Kyiv bought one third of all generators from the “Epicenter” of the Gereg family // KV collage
During a scandal about the misuse of budget funds for buying generators at the national level, it was revealed that in the capital, almost 80% of generator purchases were made without auctions. This meant that customers could choose who to buy from based on their own preferences. As a result, one third of the money spent from the capital’s budget for generators went to one company – Epicenter K LLC, owned by Verkhovna Rada deputy Oleksandr Gerega and ex-secretary of the Kyiv City Council Galina Gerega (both in the collage).
As was recently discovered KV from the information provided by the public analytics module B.I.Prozorro, the Kyiv City State Administration (KSCA), RSA, and capital utilities made 123 contracts to buy generators in 2022, with a total price of UAH 85.48 million.
Since October 10, 2022, the Russian army has been deliberately launching missile strikes on Ukrainian energy facilities, leading to constant power outages due to damage to power plants and networks in the country and Kyiv.
The worst electricity supply situation was in December. Consequently, there was an increase in purchases of alternative energy sources in the capital, particularly diesel and gasoline generators. The number of such purchases rose from 5 in October to 27 in November, and reached 70 in December.
Who purchases generators for the capital
Last year, several customers bought generators in the capital. The Department of Municipal Security of the Kyiv City State Administration was the largest purchaser, buying devices worth 43.52 million hryvnia, which accounted for 51% of the total. According to the contracts, 544 generators were to be delivered to the department's address by the end of last year.
The Department of Education of the Dnipro District State Administration (RGA) was the next most active customer of generators in Kyiv in 2022, purchasing 155 generators for UAH 10.35 million, which made up 12% of the total purchases. All of these generators were intended for educational institutions in the region.
Two medical institutions – the Kyiv City Center for Nephrology and Dialysis and Kyiv City Clinical Hospital No. 3 – each ordered one generator for their needs, spending 5.84 million hryvnia and 5.6 million hryvnia respectively. Additionally, KNP Clinical Hospital Psychiatry purchased four generators for UAH 3.35 million.
The remaining 95 customers bought generators for about UAH 17 million per year, which is 20% of the total price of all contracts. The price of contracts for each of these customers was not more than 1 million hryvnias.
From whom did you make the purchase? From Epicenter!
In 2022, 67 suppliers were chosen to provide generators for the capital. Almost half of the year’s generator disbursements went to two contractors, with one of them winning contracts by a wide margin. The total price of all "generator" contracts for the year was 85.48 million hryvnias, with 8 contracts totaling almost 29 million hryvnias being signed with Epicenter K LLC.
The company is expected to supply 408 generators for the city in exchange for these funds. The Municipal Security Department of the Kyiv City State Administration ordered 400 generators for 28.63 million hryvnias from them.
The second place in terms of the amount of funds disbursed from generators in the capital last year was taken by LLC “Shidbudtransgaz” (**). This company received only one, but quite a valuable contract – at a cost of 11.44 million hryvnias from the same Department of Municipal Security of the KSCA for the supply of 144 generators.
The remaining 65 suppliers of generators for Kyiv received all 121 in a row for a total of UAH 45 million.
on public procurement under martial law.
Among the customers, the leader in spending budget funds on generators without auctions was the Department of Municipal Security of the Kyiv City State Administration, which made absolutely all its purchases without competition, choosing contractors at its own discretion. Among the contractors, the leader in obtaining contracts without tenders is Epicenter K LLC, which got all the contracts without auctions.
About contractors from Epicenter According to the analytical systemYou control
, Epicenter K LLC was registered in 2003 in Kyiv. The authorized capital is UAH 158.6 million. The main activity is “retail sale of other non-consumable goods in specialized stores”. The founders are Alexander Gerega (51.3%), Galina Gerega (47.9%) and Tatyana Surzhik (0.73%). The company is managed by Petr Mikhailishin.
The enterprise is part of the Epicenter group, which includes the Epicenter and Novaya Liniya construction hypermarket chains, the Vinnitsa Agro-Industrial Group agricultural holding, and a land bank with 160,000 hectares under cultivation.
Oleksandr Gerega is a deputy of the Verkhovna Rada of the 9th convocation, a member of the deputy group of the For the Future party. He was also a member of the Verkhovna Rada of the VII (Party of Regions faction) and VIII (non-factional) convocations. All three times he was elected in the 192 district in the Khmelnytsky region.
Galina Gerega is a deputy of the Kyiv City Council of the 5th and 6th convocations, the “Public Assets of Kyiv” faction. From April 20, 2011 to June 5, 2014, she was deputy mayor – secretary of the city council. From July 12, 2012 to June 5, 2014, she acted as the Mayor of Kyiv in connection with the resignation of Leonid Chernovetsky. According to the Clarity-project, Epicenter K LLC took part in public procurement and obtained over 190 thousand contracts valued at UAH 2.94 billion. The company received more orders from large joint-stock companies like Ukrgasdobycha, Ukrposhta, and Kharkovoblenergo. received
Last year, the city authorities showed favoritism towards the business of the Gereg family through various actions. This included backdating permits for new stores and approving designs for construction after work had already started on the land. Additionally, reconstruction permits were issued for shopping centers and a hypermarket. The Kyiv City State Administration also allowed the design of a center for issuing online orders for Epicenter N LLC.
During the general lockdown, the Epicenter hypermarkets continued to operate, causing public outrage. The Kyiv Regional Territorial Branch of the Antimonopoly Committee of Ukraine began investigating potential competition law violations by Epicenter and Novaya Liniya stores. However, none of the 26 protocols drawn up against Epicenter stores have been taken to court.
Vostokstroytransgaz, the second firm in terms of the price of contracts received for the supply of generators for Kyiv last year, was established in 2018 in Kharkov. The authorized capital is 100 thousand hryvnias, and its main activity is the construction of residential and non-residential buildings. The founder and director is Alexey Kobylsky.
Alexey Kobylsky was a former party ally of Alexander Gerega and was elected as a deputy in the Zachepilovsky District Council (Kharkiv region) from the Party of Regions in 2010.OOO “According to the results of participating in public procurement, LLC Shidbudtransgaz obtained 8 contracts worth UAH 116.27 million. The largest customer is JSC Ukrgasdobycha, as well as LLC Epicenter K.
It was revealed on January 22, 2023 that a scheme for embezzlement of funds for the purchase of generators from the state budget had been uncovered. Detectives of the National Anti-Corruption Bureau of Ukraine (NABU) reported that in the summer of 2022, the Cabinet of Ministers allocated UAH 1.68 billion, including for the purchase of equipment and machinery to provide the population with alternative sources of light, heat, and water in the winter. However, a number of officials of central and regional executive authorities decided to misappropriate part of the state funds.
Perhaps this is a coincidence, but Alexei Kobylsky is a former party ally of Alexander Gerega. In 2010, Oleksiy Kobylsky was elected a deputy of the Zachepilovsky District Council (Kharkiv region) from the Party of Regions. According to the results of participation in public procurement LLC “Shidbudtransgaz” signed
8 contracts for UAH 116.27 million. The largest customer is JSC “Ukrgasdobycha” (as well as LLC “Epicenter K”).
Recall that on January 22, 2023, it became known about the exposure of a scheme for embezzlement of funds for the purchase of generators from the state budget. Detectives of the National Anti-Corruption Bureau of Ukraine (NABU) reported that in the summer of 2022, the Cabinet of Ministers allocated UAH 1.68 billion, including for the purchase of equipment and machinery to provide the population with alternative sources of light, heat and water in the winter. However, a number of officials of central and regional executive authorities decided to appropriate part of the state funds.
The structure of this organized criminal group, according to investigators, included Deputy Minister of Development of Communities, Territories and Infrastructure of Ukraine Vasily Lozinsky, who was detained while receiving a $400,000 bribe for facilitating the conclusion of contracts for the purchase of generators at inflated prices. On January 24, a man was also taken into custody, whom the National Anti-Corruption Bureau (NABU) and the Specialized Anti-Corruption Prosecutor’s Office (SAP) suspect of organizing the provision of a bribe to Vasily Lozinsky. The Department of Municipal Security of the KSCA (until 2020 – the Department of Civil Protection of the KSCA) since December 12, 2018 heads Roman Tkachuk . Since November 2021, the activity of this structure has been controlled by the Deputy Chairman of the Kyiv City State Administration on the implementation of self-governing powers, the former head of the Main Directorate of the National Police of Kyiv (2015-2020)Andrey Krishchenko
. Alena Momot, translation
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